Petrobras Master Plan PN 2009-2013

Strategic Plan 2009-2013January 26, 2009

DISCLAIMER

The presentation may contain forecasts about future events. Such forecasts merely reflect the expectations of the Company's management. Such terms as "anticipate", "believe", "expect", "forecast", "intend", "plan", "project", "seek", "should", along with similar or analogous expressions, are used to identify such forecasts. These predictions evidently involve risks and uncertainties, whether foreseen or not by the Company. Therefore, the future results of operations may differ from current expectations, and readers must not base their expectations exclusively on the information presented herein. The Company is not obliged to update the presentation/such forecasts in light of new information or future developments. Figures for 2009 on are estimates or targets.

The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this presentation, such as oil and gas resources, that the SEC’s guidelines strictly prohibit us from including in filings withthe SEC.

CAUTIONARY STATEMENT FOR US INVESTORS

Market Value as of July 1, 2009

2008 Oil & Gas Production

2008 Refining Capacity

2008 Proven Reserves (SEC)

A WORLD-CLASS, PUBLIC, INTEGRATED ENERGY COMPANY

Note: Peer companies selected above have a majority of capital traded in the public markets.

Source: Evaluate Energy and Company reportsSource: Evaluate Energy and Company reports

Source: PFC Energy WRMS (barrels per calendar day, considering company % shareholding and including JVs)

(bln boe)

(mmboe/d)

(mcb/d)

3.9 3.8

3.2

2.5 2.4 2.4 2.31.9 1.8

XOM BP RDS CVX PBR COP TOT STL ENI

299828

2,223 2,083

5,675

2,6002,9173,119

3,905

XOM RDS BP COP TOT PBR CVX ENI STL

3

Market Value as of December 31, 2008

52.277.296.8 93.6

406.1

128.7143.6150.3161.1

XOM RDS CVX BP TOT PBR ENI COP STL

Source: Bloomberg

(US$

bn)

5.66.6

10.210.511.211.211.7

17.9

23.0

XOM BP RDS PBR C VX T OT C OP ENI ST L

Announced 10 billion boe in potential recoverable reserves (from Pre-salt blocks of Tupi, Iara, EspíritoSanto pre-salt and Golfinho ring-fence)Increased production by 7% to 2,436 thousand boe/dIncreased gas production by 21%Added +one million bbls of new production capacityIncreased net revenues 54%1

Increased net income by 56%1

DELIVERING OUTSTANDING GROWTH

Since August 2007 when we released ourlast strategic plan, we have:

EXCELLENT PERFORMANCE

13Q 2008 vs. 3Q 2007 4

IMPRESSIVE RECORD OF ACCELERATING DEVELOPMENT

Prod

uctio

n(b

/d)

Discovery of giant fields in Campos Basin inc. Albacora (1984)

Discovery of the Pre-salt, including Parati (2006)

Number of years

Production since founding of Petrobras (1954)

12 y

ears

22 y

ears

16 y

ears

27 y

ears

45 y

ears

54 y

ears

5

Discovery of Garoupa in the Campos Basin (1974)

0

200

400

600

800

1000

1200

RDS PBR TOT XOM PTR SLB BP CVX SPC BHI STL ENI HAL BHP GAZP

0%

1%

2%

3%

4%

2007 R&D % of Revenues

US$ mm % of Revenues

A CONTINUED COMMITMENT TO R&D…

Source: PFC Energy

Top 10 2007 R&D Spenders in the Energy Sector

0%

20%

40%

60%

80%

100%

International

G&E

Corporate

Downstream

E&P

6

GIVES US A COMPETITIVE ADVANTAGE IN THE DEEPWATER

2007 Gross Global Operated Deepwater Production (mboe/d)

PBR

23%

XOM15%

RDS13%

STL13%

BP9%

CVX7%

APC6%

TOT6%

BG4%

HESS2%

ENI2%

Source: PFC Energy | Note: Est imat ed volu mes above reflect wh at operators are respon sib le for produ cing , not what they keep on a n et working interest o r entitlement basis. M inimu m wat er d epth is 300 met ers; eleven operators above account for 94% of glob al deep water produ ction in 2007.

Petrobras operates 23% of global deepwater production

7

STRATEGIC VISION: TO BE ONE OF THE WORLD’S FIVE LARGEST PUBLICLY TRADED OIL PRODUCERS

2007 (SEC) reserves and production

XOM

RDS

BP

CVXTOT COP

PBR

5,000

10,000

15,000

20,000

25,000

30,000

2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500

Production (mboe/d)

Reserves (mm boe

)

ProductionTarget: 2009



8

2007 Total Oil Consumption by Country (mmbo/d)

DOMINANT POSITION IN A LARGE AND GROWING EMERGING MARKET

Source: BP Statistical Review 2008, PFC Energy

Total Oil Consumption mb/d (index)

Brazil is world’s ninth largest oil consumer

Brazil oil consumption growing at 2.4% p.a.OECD oil consumption growing at 1% p.a.

100

110

120

130

140

150

160

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Brazil OECD World

2.4

1.61.71.71.92.02.22.22.32.42.72.7

5.1

0

2

4

6

8

US

China

Japa

n

India

Russia

Germ

any

S. Korea

Canada

Brazil

Saud

i

Mexico

Fran

ce

Italy UK

Iran

20.77.9

9

Significant light oil and gas discoveries have been made in the Espirito Santo Basin

82% of our total crude production currently comes from Campos Basin

RoncadorMarlimAlbacoraIaraJupiterTupiCarioca

ThunderHorse

AgbamiAkpo

Kizomba

Girassol, Jaz, Rosa

Dalia

Khurais

Kashagan

KurmangaziShahDeniz Azadegan

Anaran

Sakhalin II

Sakhalin I

HIGH-POTENTIAL PORTFOLIO IN ONE OF THE WORLD’S MOST EXCITING PROVINCES...

Development of the Santos Basin sub-salt play will drive our long-term production growth

Circle size indicates estimated reserves

10

AND APPLYING UNIQUE EXPERTISE TO SELECTED INTERNATIONAL OPPORTUNITIES

Projected equity production from Petrobras international operations(Thousand boed)

124 142210

409100 103

131

223

2008 2009 2013 2020Oil and NGL Natura l Gas

8.8% p.y.244224

9.0% p.y.

341

632

Production considering Petrobras’ participation in projects 11

BUSINESS AREA

79%

7%

8%5% 1%

E&P RTCPG&E DistributionCorporate

INTERNATIONAL INVESTMENTS

COUNTRY

16%

5%

28%

12%

22%

17%

Argentina AngolaUSA NigeriaNew Opportunities Other Countries

Total InvestmentsUS$ 15.9 billion

12

Biofuels InvestmentsUS$ 2.8 billion

Participate in Brazilian ethanol chain anddevelop global markets for Brazilian ethanolParticipate sustainably in the biodiesel business in Brazil and with selectiveinternational investmentsDevelop competitive technologies to producebiofuels from residual biomass

GROWING OPTIONS IN BIOFUELS AND LOW-CARBON TECHNOLOGIES...

84%

16%

Ethanol Biodiesel

STRATEGY: To establish a global presence in the biofuels segment, with a particular focus on

biodiesel and ethanol

13

WHICH CONTINUE TO INCREASE IN IMPORTANCE

Brazilian Biodiesel Market andPetrobras Production Target*Ethanol Exports

* Base case: Demand B5 in 2013

1.08

4.23

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

2009 2013

40.6% p.y.

535(20%)

401 (29%)

2.65

1.37

0

500

1000

1500

2000

2500

3000

2009 2013

17.9% p.y.

PetrobrasMarket-share

(mm m³) (mm m³)

14

LOOMING UNCERTAINTIESOil pricesCostsFuture demandFuture supplyCompetitiveness of biofuelsDevelopment of game-changing technologies

GEOPOLITICSGlobal economic crisisConflicts and warsPolitical tensionsEnvironmental implicationsElectionsRising tides of nationalism

VITAL RESOURCESGoods & servicesHuman resources

• Aging workforce • Difficulties in attracting

new workers• Shortage of specialized

candidates

IMPORTANT DECISIONS MUST BE MADE IN A TIME OF UNPRECEDENTED UNCERTAINTY...

15

GLOBAL OIL DEMAND SCENARIOS

HOWEVER, THE MEDIUM/LONG-TERM OIL MARKET OUTLOOK REMAINS VERY STRONG

Source: IEA World Energy Outlook 2007, EIA International Energy Outlook 2007

Production in most non-OPEC countries is at a plateau or in decline;Global oil production capacity will be challenged to meet projected demand growth;Lower demand and capital spending during current down-cycle will postpone the crunch, but not eliminate it.

Existing production0

20

40

60

80

100

120

140

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

Natural decline

Observed decline

Existing productionNatural decline

Actual declineExisting production

mm b/d

Global demand scenarios

EIA/DOE High Demand Scenario

IEA Reference Scenario

EIA/DOE Low Demand Scenario

2030 | 75 – 90 mm2020 | 55 – 65 mm

Additional RequiredCapacity (b/d)

16

AND PRE-SALT CAN BE DEVELOPED AT A RELATIVELY LOW COST

Source: IEA – Outlook 2008

Expected Costs of Production

Prod

uctio

nco

sts

(US$

/bbl

-200

8)

Reserves (bn bbls)

1000 2000 3000 4000 5000 6000 7000 8000 9000 100000

20

40

60

80

100

120

140

Deepwater andUltra-deep water

Produced MEN A

Otherconvention

al o il

CO

�-

EOR EO

R Arc

tic

Heavy oiland

bitumen

OilShales

Gas to liquids

Coal to liquids

Petrobras expectedmaximum break-even cost

17

A VISION FOR INTEGRATED GROWTH TO 2020…

Commitment to Sustainable Development

Integrated Growth Profitability Social & Environmental Responsibility

Expand operations in target markets for oil, oil products, petrochemicals, gas and energy, biofuels and distribution and to be recognized as a model integrated energy company

Grow oil and gas production in a sustainable manner, and become one of the five largest oil producers in the world

To have a global presence in the biofuels business with participation in the biodiesel and ethanol businesses

Capture value added through expansion of integrated operations in refining, commercialization, logistics & distribution with a focus on the Atlantic Basin and Far East

Consolidate leadership in the Brazilian natural gas market while establishing an international presence and increase domestic electricity generation business

Expand integrated petrochemicals operations while capturing synergies within Petrobras

Operational, management, human resources and technological excellence

BiofuelsE&PDownstream

(RTC) Distribution Gas & Energy Petrochemicals

18

Business Plan 2008-12

26%

1%2%

6%

4%2%

59%

E&P

RTC

G&E

Petrochemicals

Biofuels

Distribution

Corporate

US$ 112.4 billion

65.129.6

6.74.3 2.6

1.52.5

Business Plan 2009-2013

25%

2%2%

7%3%

2%

59%

E&P

RTC

G&E

Petrochemicals

Biofuels

Distribution

Corporate

US$ 174.4 billion

104.6 (*)43.4

11.8

5.6 3.02.83.2

(*) US$ 17.0 billion allocated to Exploration

AND A CAREFULLY CRAFTED SPENDING PROGRAM TO SUPPORT THAT VISION

19

Evolution of Capex: Plan 2009-2013 vs. Plan 2008-2012

WITH MOST OF THE INCREASES RELATED TO NEW PROJECTS

(*) Change in Business Model, excluded projects, change in aschedule| Note: Investment levels do not reflect expected declines in future costs

111.2

174.4

8.1

47.9

17.13.4 2.9

020406080

100120140160180200

2009‐13 S pend(as declared in

prev iousB us inessP lan)

+ NewProjects

+ C os tIncreas e

+ Ajus tment toprojects

+ E xchangerate effect

‐ Others* 2009‐2013Inves tment

P lan

US$

billi

on

20

PRIORITIZING E&P PROJECTS

77%

1%4%12%

6%

E&P RTC

G&E Biofuels

(PQF, Dist., Corp)

US$ 47.9 Billion • Petrobras strategy gives first priority to meeting production targets

• E&P accounts for 76% of new project spending (US$ 28 bn for pre-salt)

36.6

3.1

5.72.1

0.4

21

FLEXIBLE PIPELINE OF PROJECTS 2009-13: BY PHASE

A substantial portion of our investment plan has yet to be approved and contracted

Only projects with a positive NPV at cost of capital will be approved

28.3%

49.2%

1.5%

14.3%

6.7%

Phase I (Under Evaluation)

Phase II (Conceptual)

Phase III (Design)

Phase IV (Approved)

Acquisition

85.8

11.7

49.3

24.9

2.7US$ bn

More than 530 Large Projects in Portfolio

22

Create jobs and income

Reinforce internal market

Strengthen Brazilian economy

INCREASING LOCAL CONTENT STRENGTHENS PETROBRAS BUSINESS IN THE LONG RUN

From a business perspective...

From a Sustainability stand point...

Local content

Expanded supply capacity

New suppliers

Lower prices

More equipment availability

Increased flexibility

23

OPTIMIZING COSTS

Planning

Oversight

Culture

• More details less risk• Simplification• Standardization (i.e. 8 identical Pre-salt

FPSOs)• Carefully considering industry-standards

• Equipment purchases Smallerquantities allows participation of mid-sized companies

• Closer oversight

• Reducing redundancies

Opt

imiz

ing

Cost

s Planning

Oversight

Culture

24

A COMMITMENT TO OUR WORLD-CLASS WORKFORCE

Participants in Training Programs

27,000 new employees since 2002

Forecasted demand for workers in the Petrobras supply chain: 112,625 employees

Number of Employees

The Brazilian government, with Petrobras support, has a specific program to meet this demand

2002 2003 2004 2005 2006 2007 2008

46,72348,798

52,03753,904

68,93162,266

74,240

Post-grad: 845

University: 23,084

ENGINEERINGCIVIL

CONSTRUCTIONCONSTRUCTION &

ACQUISITION MAINTENANCE5,967 15,020 84,576 7,062

PhD: 232

Master: 1,098

774

989 1,0431,213

2,468

2,101

2,822

2002 2003 2004 2005 2006 2007 2008

Employees w ith an undergraduate degree, but lacking previous experience, attend Petrobras University for up to 1 year before starting work

25

CONSISTENTLY DELIVERING RESERVES GROWTH…

123% reserve replacement rate in 2008. Over the past decade, reserve replacement has principally been driven by internal additions in Brazil

Aiming for a reserves to production life of 15 yearsMore than 50% as undeveloped reserves

13.0412.35 13.1712.52

0.880.88

0.921.23

2004 2005 2006 2007 2008

Production(0.70 bn boe)

13.02 13.23 13.75


Reserves Replacement

Index(174%)


Index(131%)



Index(123%)



Index(124%)

13.92 14.09

26

Petrobras Total Production (000 b/d)

AND PURSUING NEW PROJECTS WHILE MAXIMIZING PRODUCTION FROM EXISTING ASSETS

8.8% p.y.2,4002,3082,3052,2232,0272,042

1,8121,637

5.6% p.y.

5,729

3,655

2,757

7.5% p.y.

1.335 1.500 1.540 1.493 1.684 1.778 1.792 1.855 2.0502.680

3.920

232252 251 265

274 277 273 321463

634

1.177

161 168163 142 126 124

142

210

409

131

223

3544

10310010910196

94852324

2001 2002 2003 2004 2005 2006 2007 2008 2009 2013 2020

Oil production ‐ Brazi l Ga s producti on ‐ Bra zil Oil Product ‐ Internationa l Ga s Product ‐ Inte rna ti onal

27

AT A VERY COMPETITIVE COST.

PFC Energy / Note: (Unproved & Proved Property Acquisition + Exploration & Development Expenditure)/(Revisions + Improved Recovery + Extensions & Discoveries + Purchases); 3-year time frame

Total 2007 F&D costs per barrel (3-year roll)

$0

$5

$10

$15

$20

$25

$30

LUKO

ILExxonM

obil

EnCa

na

Petro‐Canada

Devon

Woo

dside

Petrob

ras

Can Natl Res

Noble

Hess

BG

Apache

Murph

y

Occidental

Maratho

n

Pioneer

Cono

coPhillips

BHP Billiton

Nexen

Shell

StatoilHyd

ro

Chevron BP

Anadarko

Talisman

OMV

Eni

TOTA

L

$0

$5

$10

$15

$20

$25

$30

$35

2000 2001 2002 2003 2004 2005 2006 2007

Petrobras

Total F&D costs per barrel (3-year roll)

Peer Group

28

EXPLORATION & PRODUCTION

EFFECTIVE STRATEGY 2009-2013

Discover and develop resources in Brazil and

internationally, maintaining a reserves-to-production ratio

of 15 years

Delineate and develop the pre-salt cluster and

new oil provinces in Southeast Brazil

Apply innovative deepwater expertise in

new high-potential frontier provinces in

Brazil and abroad

Increase production in Brazil and abroad,

optimizing the use of existing infrastructure

Develop an integrated global natural gas network to supply

Petrobras’ markets

30

FOCUSED & DISCIPLINED INVESTMENT

Total Investments of US$ 104.6 billion in E&P through 2013,of which US$ 92 will be spent in Brazil

17%

12%

58%

13%

Exploration

Santos Pre-salt

Development

International

31

E&P CASH FLOW: US$ / BOE (2007)

$20.28$19.91

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

Petrobras Peer average*

E&P REVENUES: US$ / BOE (2007)

TO DELIVER RETURNS ON PAR WITH THE MAJORS

Source: Company reports*Peers: ExxonMobil, Chevron, ConocoPhillips, TOTAL, RD Shell and BP

$46.93 $47.92

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

Petrobras Peer average*

32

INDUSTRY-LEADING PRODUCTION GROWTH

Source: Evaluate Energy (2004-2008 CAGR)

Petrobras Oil and Gas Production (000 boe/d)

33

2,020

2,217

2,298 2,301

2,400

2004 2005 2006 2007 2008

4.4% CAGR

7,75

5,334,40 4,38

2,48

-3,71-2,57-1,79-1,021,36-3,78

Con

ocoP

hilli

ps

Luk

oil

Pet

robr

as

Pet

roC

hina

EN

I

C

hevr

on

BP

Exx

onM

obil

Tot

al

R

D S

hell

R

epso

l YP

F

CAGR (2004-2008) - %

Petrobras Total Production (000 b/d)

AND PURSUING NEW PROJECTS WHILE MAXIMIZING PRODUCTION FROM EXISTING ASSETS

8.8% p.y.2,4002,3082,3052,2232,0272,042

1,8121,637

5.6% p.y.

5,729

3,655

2,757

7.5% p.y.

1.335 1.500 1.540 1.493 1.684 1.778 1.792 1.855 2.0502.680

3.920

232252 251 265

274 277 273 321463

634

1.177

161 168163 142 126 124

142

210

409

131

223

3544

10310010910196

94852324

2001 2002 2003 2004 2005 2006 2007 2008 2009 2013 2020

Oil production ‐ Brazi l Ga s producti on ‐ Bra zil Oil Product ‐ Internationa l Ga s Product ‐ Inte rna ti onal

34

ESTIMATED OIL PRODUCTION IN BRAZIL

Out of the 824 kb/d in domestic production growth through 2013, 566 kb/d will come from fields where we have already declared commerciality

2008 2009 2013 2015 2020

Light Oil ≥ 31º API Medium Oil Heavy Oil ≤ 22º API

1,855

2,6803,340

3,920

2,050

The PN 2008-2012 Brazil oil target for 2015 was 2,812 k b/d. The new target represents an increase of 19% (+528 kb/d)

The biggest contribution in the domestic production growth of 1,240 kb/d between 2013 and 2020 will come from pre salt production

Petrobras Total Production in Brazil (000 b/d)

35

ROBUST PROJECT PIPELINE - 2009

Light Oil Heavy Oil Natural Gas

1,855 51

thou

sand

b/d

Milli

on m

3/da

y

2,050

2008 2009 2008 2009

In addition to the five new projects starting-up in 2009, P-52 and P-54, which will reach peak production this year, and P-53, which started operation in December 2008, will contribute to production increases

73

P51MARLIM SUL

FRADE

EWT Tupi

JABUTI

PARQUE D ASCONCHAS URUCU

CANAPU

CAMARUPIM

LAGOSTA

MANATIexpansion

P53MARLI M LESTE

SIRI 1

10.5% 43.1%

36

AND 2010-2013

Pre-salt Natural GasHeavy oil

P-57JUBARTE

CACHALOTE.BALEIA FRANCA,

BALEIA ANÃ

TUPIPilot

BALEIA AZUL

P-56MARLIM SUL

Oil

Oil and gas

URUGUÁTAMBAÚ

MEXILHÃO

JURUÁARACANGA

2.682.58

2.432.25

2.05

3.323.20

3.02

2.79

2.51

2009 2010 2011 2012 2013

milli

on b

oe/d

P-62 RONCADOR

P55 RONCADOR

P-61PAPA-TERRA

P-63PAPA-TERRA

TUPI 1Pilot Expansion

GUARÁ 1 or IARA 1P-51

MARLI M SUL

FRADE

EWT Tupi

JABUTI

PARQUE D ASCONCHAS

URUCU

CANAPU

CAMARUPIM

LAGOSTA

MANATIexpansion

37

MAJOR PROJECT OVERVIEW 2009-2013

180 th b/d

100 th b/d

< 100 th b/d

20092010201120122013

TraditionalCampos Basin

Espírito Santo Basin

Parque das Baleias/ Espírito Santo Pre-salt

Pre-Salt Cluster

38

SIGNIFICANT RESOURCE BASE YET TO BE DEVELOPED

Announced recoverable volumes in the pre-salt can double our reserves…

~23.5 -28 bn boe

Lowerestimates

9.5

Higherestimates

+4.513.920 14.093

747 920

2007 ProvenReserves*

- AccumulatedProduction in

2007

+ Incorporatedas ProvenReserves

2008 ProvenReserves*

+ AnnouncedPre-salt

discoveries(Tupi, Iara andEspírito Santo)

AnnouncedReserves

bn boe

39* Accordi ng to Society of Petrol eum Engineers – SPE

IMPLEMENT INTEGRATED PROGRAMS TO IMPROVE OIL RECOVERY, THAT:

OPTIMIZE RECOVERY FROM EXISTING FIELDS

Reduce the natural decline rate of oil producing fieldsIncrease reserves through the improvement of recovery factorsOptimize costs, increasing reserves and production Production

TimeProjects to increase reservesProjects to reduce decline rate

Natural decline rate

Employing IOR techniques

40

ALBACORA

P-25

Raw Water Injection (RWI)

P-31

Albacora field: a model where innovative technologiesare used to revitalize production.

RECAGE identified complex technical limitations onplatforms P-25 and P-31 (Albacora). It was not possible to inject enough water in the production units.

Solution to recover production:CENPES developed RWI (Raw Water Injection), technology that reinject seawater into a reservoir through an injection well, thereby increasing production capacity.

The system uses electrical submersible pumps and filters on the sea-bed, without disturbing surface installations.

41

CARMÓPOLIS

SERGIPECarmópolis field: started-up production in 1963 and today is one of two examples of the most successful implementation of an solution to enhance productivity.

It was in this field that “rigless” technology was introduced: replacing rigs, to fracture a well utilizing hydraulic power.

Direct Effects:• Increased production;• Reduced well costs;• Improved the recovery factor: from 27% to 30% (in 2009);• New expected peak production: 25.4 mmb/d (in 1990) to

31.6 mmb/d (in 2009);• Extended the useful life of the field an additional 18 years:

from 2007 to 2025.

42

CARMÓPOLIS

Expected increase of 36%

Carmópolis Production (b/d)

Forecas

t 200

9

43

DIVERSIFIED AND FLEXIBLE PORTFOLIO

ESPÍRITO SANTO

Golfinho

Parque das Baleias/Pre-Salt Espírito Santo

VITÓRIA

150 MM boeOPTIMIZING EXISTING SYSTEMS IN THE GOLFINHO FIELD:

Moving FPSO Capixaba (100 Mb/d) from Golfinho to Parque das Baleias in anticipation of the development of the Espirito Santo pre-salt ;

Developing new discoveries in the RingFence of Golfinho (150 million boe) using FPSO Cidade de Vitória;

Relocating a well from FPSO Capixaba to FPSO Cidade de Vitória

44

USING CONTRACTS AND LEASES TO SECURE NEEDED DRILLING ASSETS

29 RIGS CONTRACTED PLUS 28 TO BE LEASED UP TO 2017, MAKING A TOTAL OF 57 NEW DRILLING RIGS

Ocean YorktownPride Mexico Borgny DolphinOcean ConcordFalcon-100

Water Depth 2008 2009 2010 2011 2012 2013-2017

0-999m

Petrobras XVIPetrobras XVIIAl askan StarAtlantic StarOcean WittingtonP. South Atlantic

Petrobras XIV

1000-1999m

Petrobras XPetrobras XXIIIP. South AmericaP. PortlandP. Rio de JaneiroP. BrazilP. Carlos WalterOcean YatziOcean Alliance

Ocean WinnerT. DrillerSedco 710N. Therald MartinN. Leo SegeriusN. MuravlenkoLouisianaS.C. LancerPeregrine I

Olinda StarOcean Worker

≥ 2000m

Sedco 707Dw. NavigatorN. Roger EasonO. ClipperN. Paul Wolf

Noble Dave BeardSevan DrillerWest TaurusWest EminenceSSV Victoria

Gold StarPantanalNorbe VIDelba IIIWest OrionPetrorig IILone StartAmazonia

Delba IVSchain TBN1Sevan BrasilDS Carolina

Delba VDelba VIScorpionDelba VIIDelba VIIINorbe IXSchahin TBN2Norbe VIIIEtesco 8

+ 28 new units to be leased

Total per year 34 7 8 5 9 28

Cumulative 41 49 54 63 91

45

ESTABLISHED EXPLORATION PORTFOLIO AT DIFFERENT STAGES OF DEVELOPMENT

Potiguar

SEAL& REC & TUC

Bahia Sul

Espírito Santo

Campos

Santos

Ceara & Potiguar

Pelotas

Margem Equatorial

Solimões

São Francisco

PetrobrasOthers

Brazil Exploration: 2009-13 US$ 13.8 bnExploratory Area: 157.59 km²278 exploratory blocks30 appraisal plans303 production concessions

46

0

250

500

750

1.000

1.250

1.500

1.750

2.000

2.250

2.500

2.750

2002 2003 2004 2005 2006 2007 2008 2009‐2013

0%

10%

20%

30%

40%

50%

60%

70%

Exploration Capex

US$ mm Success Rate

EXPLORING TO LEVERAGE EXCITING FRONTIER PLAYS IN OUR OWN BACKYARD

47

CoreFocusNew Venture

INDIA

PAKISTAN

IRAN

TURKEY

LIBYAPORTUGAL

SENEGAL

NIGERIA

ANGOLA MOZAMBIQUE

TANZANIABRAZIL

ARGENTINA

BOLIVIA

PERU

EQUADOR

COLOMBIA

VENEZUELAMEXICO

CUBAUS GoM

…AND APPLYING UNIQUE EXPERTISE TO SELECTED INTERNATIONAL OPPORTUNITIES

48

PRE-SALT PROVINCE

Tested wells Campos HCExploratory BlocksPre-Salt reservoirs

MINA GERAIS

SÃO PAULO

PARANÁ

Total area of the Province: 112,000 km2

Area under concession: 41,000 km2 (38%)Area not under concession: 71,000 km2 (62%)Area with Petrobras interest: 35,000 km2 (31%)

RIO DE JANEIRO

ESPIRITO SANTO

49

PRE-SALT OVERVIEW

US$ 28.9 bn in capex through 2013 related to pre-salt development

Initial oil production via FPSOs

Initial natural gas production brought onshore via pipeline

Six production units in Campos and Espírito Santo pre-salt starting-up by 2014, excluding extended well tests

Estimated oil production of 219 kb/d in 2013

~7 mm m3/d of natural gas available to the market by 2013

Many production systems programmed through 2020

Oil production in 2015: 582 kb/d

Oil production 2020: 1,815 kb/d; natural gas available to the market: 40 mm m3/d

50

SANTOS BASIN PRE-SALT CLUSTER

Rio de Janeiro50 km

Tupi

Carioca

ParatiIara

GuaraBM-S-21BR 80% BM-S-24

BR 80%

BM-S-10BR 65% BM-S-11

BR 65%

BM-S-9BR 45%

BM-S-8BR 66%

BM-S-22BR 20%

Azulão

Bem-te-v i

Caramba

Major discoveries include: Tupi, Iara, Carioca, Guara, Jupiter, Parati, Bem-te-vi and CarambaMulti-billion barrel reserves potentialGood oil quality: medium-lightSeismic activity and appraisal wellsunderwayRecoverable resources announced: 5-8 bn boe in Tupi and 3-4 bn boe in Iara Three production systems by 2014: Tupi, Iara and Guara

51

TUPI

Rio de Janeiro50 kmExtended well test (EWT)• Tupi-Sul re-entry underway• Vessel conversion completed• First production Q2 2009• Up to 14,000 b/d

Initial development sanctioned(pilot)• Major contracts awarded• Oil 100,000 b/d • Gas pipeline 216 km to Mexilhão• Production late-2010

Full field development• Development optimization studies• Resources 5-8 bn boe• Expansion in the Pilot in 2013

Tupi

52

2007.....

2012t.....2009

1st Oil – EWT Tupi (Mar/09)

2010

1st Oil – Tupi Pilot (Dec/10))

2017

Significantproduction level

DEVELOPMENT STRATEGY (example: TUPI)

• Area Delimitation

• Analyze reservoir flow

• Fractured well performance• Complete sampled core• Material analysis vs. CO2

EWT (Mar/2009), Tupi Pilot and appraisal wells

Phase 0

Information Acquisition

Objective

Focus

PhasesDefinitive Development

• Analyze water and gas/CO2 injection behavior

• Test adjustments on FPU related to CO2

• Test improvements in well projects

• Apply previous dominated concepts and technologies with necessary adjustments to reach significant production by 2017

• Aggregate innovative technical solutions to optimize project performance

Implementation of “Y”production units

Implementation of “X” production units(Replicant FPSOs)

Phase 1A Phase 1B

53

IARA

3-4 bn boe of resource Thick reservoir sectionOutline forward plans

• Re-entry/test of Iara-1 in Q1/2 2009• Full field development studies • Appraisal wells 2010/11• EWT with production in 2010/11• Production FPSO by 2014

54

• Re-entry/test of Guara-1, Q1/2 2009• Full field development studies• Appraisal wells 2010/11• Possible EWT in 2010/11• Production FPSO by 2014

High quality reservoirOutline of forward plans:

GUARÁ

Rio de Janeiro

50 km

Guará

55

MG

RJ

Espí

rito

Sant

oPeroá

Camarupim

Carapó

Canapu

JUB

Catuá

Baleia Azul AB A

OST

ARG

PRBCXR

CHT

N AU

Golfinho

UTG Cacimbas

UTG Sul Capixaba

UPGN Lagoa Parda

Cangoá

Baleia Franca

Terminal Barra do Riacho

Infrastructure in-placeP-34 at Jubarte field, first pre-salt production: excellent results, prod. up to 18 k b/d FPSO Seillean started in dec/08 as pilot system of Cachalote (CHT) fieldFPSO Capixaba will move from Golfinho field to Cachalote/Baleia Franca (BFR) in 1H10 FPSO Pipa II will start in 2H10 as Baleia Azul (BAZ) pilot systemBaleia Azul first definitive production unit by 4Q12Natural gas production transported via pipeline

Rio Doce

Linhares

Aracruz

Marataizes

Anchieta

Guarapari

Vila Velha

VITÓRI A

Presidente Kennedy

Sul-Norte CapixabaGas pipeline

12 a 24” –160 km7 a 15 MM m3/d

24” – 66 km25 MM m3/d

ESPÍRITO SANTO PRE-SALT

Sul CapixabaGas pipeline12” – 83 km4,5 MM m3/d

56

8731,183160

463

632

157 422

62

2013 2015 2017 2020

Pre‐Salt Petrobras Pre‐salt Partners

PRE-SALT OIL PRODUCTION

Petrobras Pre-salt Oil Production (000 b/d)

2009 -20202009-2013

98.8 18.6 Santos Basin Pre-salt

111.4 28.9 Petrobras Total Pre-salt Capex (Production Development)

12.610.3Espírito Santo Pre-salt (includes post-salt fields)

Petrobras Pre-salt Capex Through 2020

219

1,3361,815

582

57

DOWNSTREAM

VERTICALLY INTEGRATED SYSTEM TO CAPTURE SYNERGIES WITHIN THE VALUE CHAIN

PetrobrasOther Companies

Upstream Operations Downstream Operations

Existing PipelinesRefineriesMarine Terminal In Land Terminal

59

INVESTING IN REFINING INFRASTRUCTURE

As Petrobras continues to grow its upstream business, the need for a compatible refining infrastructure becomes more critical

1,7791,986TOTAL BRAZIL

67Fortaleza - Lubnor (CE)

4253Capuava - Recap (SP)

4146Manaus - Reman (AM)

132151Gabriel Passos - Regap (MG)

153170Pres. Bernardes - RPBC (SP)

169189Pres. Getúlio Vargas - Repar (PR)

148189Alberto Pasqualini - Refap (RS)

236251Henrique Lage - Revap (SP)

243242Duque de Caxias -Reduc (RJ)

261323Landulpho Alves - Rlam (BA)

348365Paulínia - Replan (SP)

Troughput(000 b/d)

Capacity (000 b/d)Refineries

RLAM

RECAP

REDUC

REVAP

REPLAN

RECAPRPBCREPAR REFAP

LUBNORREMAN

With limited investment over the last 20 years, Petrobras will increase capacity to meet the needs of a growing domestic market

60

IMPROVING THE TRADE BALANCE

Imports (000 barrels/day)Exports (000 barrels/day)

263 335 353439

260246 262

234

2005 2006 2007 2008

Oil Oil P roducts

352 370 390 373

94 118 148 197

2005 2006 2007 2008

Oil Oil Products

Despite a current surplus in volumes, Petrobras continues to run a trade deficitTargeted investments aim to reduce the need for oil imports and increase oil products exports

61

FOCUSED STRATEGY TO ADD VALUE TO DOMESTIC CRUDE

Expand refining capacityin Brazil and internationally

Improve margins by expanding average

complexity

Use commercial and logistical partnerships to

expand presence in target markets

Increase production of basic petrochemicals, capturing

synergies within the Petrobras System

Optimize quality to make Petrobras the preferred fuels brand for consumers in Brazil

and abroad

62

73%

12%7%

8%

Refining

Pipelines & TerminalTransportShip Transport

Petrochemicals

INVESTING TO REALIZE THESE GOALS

• Adding values to domestic crude and producing diesel and gasoline in-line with international standards

• Investment targets Fuel Quality, Conversion and Expansion

Downstream InvestmentsUS$ 47.8 billion

63

100

120

140

160

180

200

220

240

1 2 3 4 5 6 7 8 9 10

Source: PFC Energy

ADDRESSING THE NEED TO INCREASE THROUGHPUT CAPACITY AND COMPLEXITY...

PFC Average Complexity Index

Aver

age

Refin

ery

Thro

ughp

ut C

apac

ity (0

00 b

/d)

64

THE BENEFITS OF INTEGRATION

Return on Capital Employed

‐15%‐10%‐5%0%5%

10%15%20%25%30%35%

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Integrated Upstream Players Refiners

ROCE

Integrated Companies: BP, Shell, Exxon, Conoco, Chevron, Total, ENI, Luke Oil and RepsolUpstream Players: Apache, Anadarko, Devon, EnCana, Nexen and TalismanRefiners: Valero, Reliance Industries, PKN Orlen, Sunoco and Tesoro

Source: PFC Energy 65

Source: Platts

INCREASING GROSS REFINING MARGINS...

0

5

10

15

20

25

30

35

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

US GasolineDownturn

Gross Refining Margins = Products prices minus crude oil

Margin WTI Cracking = USGC Margin of using WTI with cracking yields

Margin Maya Coking = USGC Margin of using Maya with coking yields

Margin: WTI Cracking Margin: Maya Coking

US Gulf Coast Gross Refining MarginsUS$/bbl

66

Source: Platts

AND CAPTURING THE LIGHT/HEAVY DIFFERENTIAL

0

5

10

15

20

25

30

35

40

45

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

US$/bbl

Spread Crude Oil Light-Heavy = WTI – Maya

Spread Oil Products Light-Heavy = (Unleaded USG + N2 Diesel USG)/2 – Fuel Oil 3% USG

WTI - Maya Diesel & Gasoline – Fuel Oil

67

Domestic Crude as a Percentage of Total Feedstock Processed

95%

78%80%76%79%

75%

2000 2002 2004 2006 2008 2020

Petrobras’ refining site will be adapted to run more domestic crude, so capturing the

light/heavy differential and avoiding high acidity crude discounts

LESSENING IMPORTED CRUDE REQUIREMENTS FOR REFINING INPUTS

68

AND UPGRADING TO OPTIMIZE PERFORMANCE AND ENSURE SUSTAINABILITY

2009 2010 2011 2012 2013

Regular Gasoline Transition Period

Regular Gasoline 0,005% S

RECAP Diesel & Gasoline

REDUC Gasoline

REFAP Gasoline

REFAP Gasoline

RLAM Gasoline

RPBC Gasoline

REPAR Gasoline

REPLAN Gasoline

REVAP Gasoline

2009 2010 2011 2012 2013

Diesel S-1800

Diesel S-500

Diesel S-50

Diesel S-10

RECAP Diesel & Gasoline

RLAM Diesel

REFAP Diesel

REPLAN Diesel

REGAP Diesel

RPBC Diesel

REGAP Rev amp HDT

QUALITY OF GASOLINE QUALITY OF DIESEL

IMPROVING GASOLINE AND DIESEL QUALITY TO COMPLY WITH TIGHTER ENVIRONMENTAL REGULATIONS AND REDUCE EMISSIONS & GASES STREAMS

69

(000 b/d)

FAST GROWING DOMESTIC DEMAND…

230 257326 332 367 419250 218 255 24684 89 118 179738 783

901

1224112

150

182 202

274

400

214208

107119

2007 2008E 2013E 2020E

OthersFODieselQAVNaphtaGasolineLPG

1,906

3.3% p.y.

3.0% p.y.1,945

2,257

2,876

70

WILL BE MET BY INVESTMENTS TO SIGNIFICANTLY INCREASE REFINING CAPACITY

Domestic Crude Throughput (000 b/d)

3,012

2,270

1,7911,779

0

500

1000

1500

2000

2500

3000

3500

2008 2009 2010 2011 2012 2013 2020

71

REPLANRevamp

33 tho. bpd2010

Clara Camarão

2010

REVAP10 tho.bpd

2010

Premium I(600 th bpd)

andPremium II(300 th bpd)1st Fase:

20132nd Fase:

2015

UPB150 tho. bpd

Dez/2012

RNE230 tho.

bpd2011

REPARRevamp

25 tho. bpd2011

DOMESTIC REFINING CAPACITY ADDITIONS

0

50

100

150

200

250

300

350

400

2009 - 2010 2010 - 2011 2011 - 2012 2012 - 2013

Thousand b/d

Distillation Capacity Conversion Capacity Treating Capacity

72

Access to oil products market

Access to raw material

Logistic potential

Shared infrastructure

Adaptation to social and environmental issues (sustainability)

Capital discipline and solid returns

Adaptation to international product quality specifications

Add value to stakeholder through accessing new markets abroad

MAIN DRIVERS FOR THE NEW REFINERIES

73

ADDRESSING GROWING DOMESTIC DEMAND FOR PETROCHEMICALS

1,607 1,6252,833

800 1,0701,651

2,353

3,212

380 436

587

784

990

728699

991

1,663

310 289

526

3,6662,202

1,293

412

671

0

2,000

4,000

6,000

8,000

10,000

2000 2005 2010 2015 2020

PS

PVC

PET

PP

PE

(000 tons p.a.)

74

BY INTEGRATING THE DOWNSTREAM SUPPLY CHAIN THROUGH TARGETED INVESTMENTS

Investment decisions in this segment are based on the need to:Secure a natural hedge between petrochemical and refining cyclesDiversify into higher value-added products

Maintain flexibility and access to competitive feedstocksDevelop cost leadershipImprove competitiveness

QUATTOR

PRODUCTION1.020 kta ethene320kta propene1.040 kta PE 875 kta PP

37,3% Petrobras/Petroquisa56% UNIPAR | 6,6% BNDES

PQU

QUATTOR

PU

RIOPOL

UDQ

BRASKEM

PRODUCTION2.480 kta ethene 1.180 kta propene 510 ktaPVC 1.975 kta PE1.090 kta PP

23% Petrobras/Petroquisa38% Grupo Odebrecht36% Others

COPESUL

IQ

IPQ

75

DOWNSTREAM

COMPERJ WILL CONTRIBUTE TO THE PETROBRAS VALUE CHAIN

Products Production

(kta)Polypropylene 850Polyethylene 800Styrene 500Ethylene glycol 600PTA 500PET 600

BASICS

Products Production(kta)

FuelsDiesel 535Naphtha 284Coke 700

Petrochemicals

Ethylene 1,300Propylene 881Benzene 608Butadiene 157p-Xylene 700Sulphur 45

Expand the domestic petrochemical marketUtilize Marlim crude as feedstock

Capture synergies from existing regional infrastructureImprove the balance within the commercial value chain for oil, oil products and petrochemicals

Comperj will:

76

GAS & ENERGY

FOCUSED STRATEGY

Monetize gas reservesand add value

Price gas competitivelywith competing energy

sources while maintaining profitability

Participate globally in the full LNG chain

Flexibly supply power generation and other

markets

Optimize participation in Brazil’s electricity generating

system

Natural Gas and LNG Purchase and Sales

Transport and Distribution

Power generation, purchase and sales

Invest in electricity generation from renewable sources

78

INTEGRATED GAS AND POWER SYSTEM

ANP

ANEEL

Production Imports Distribution

Natural Gas Consumers

Thermal Plants

Hydro-power Plants

Transmission

Power Energy Consumers

Distribution

Exchanges

Processing

ONS coordinates the operation of Brazilian electrical power.

Hydro-power provides base load electricity where natural conditions allow. Thermal plants minimize deficit risk.

RAIN: ACCUMULATES ENERGY – SAVES WATER

79

INCREASING GAS DEMAND

Non-thermal Demandmillion m3/d @ 9,400 k cal/m3

IndustrialPrice parity with fuel oil, accepted by the market

AutomotiveFlex fuel fleet, more expensive kits, higher NG prices

CommercialFollowing services GDP projection

ResidentialFollowing urban population growth

Natu

ral G

as to

Non

-The

rmal

Mar

ket

6% p.a. expected average growth: 2009-13

3634

3128

25

20

1417

37

5049

45

4138

0

10

20

30

40

50

60

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Accrued Proj. Petrobras

Realized Demand Contracted Demand

Domestic Gas: contracted with natural gas distributors until 2012

Bolivian Gas: contracted with natural gas distributors until 2020

80

INCREASING DEMAND FOR GAS-FIRED GENERATION

55 58 61 64 67 70 73 77 80 84 87 91

0

10

20

30

40

50

60

70

80

90

100

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

2009-2013

Average Supply 2008: 52 GW

Ener

gy S

uppl

y(G

W A

vg)

GW Avg

5% growth p.a.

81

BALANCING SUPPLY & DEMAND

27 30 33 36 40 41

17 1927

3439 45

1419

36

4144

49

0

20

40

60

80

100

120

140

2008 2009 2010 2011 2012 2013

National Supply Bolivian Supply LNG: Existing Regas Capacity LNG Additions

Industrial Demand Other Uses Thermoelectric Demand

68

96

112

123

135

58

Indu

stria

lO

ther

Use

sEl

ectr

icity

Gene

ratio

n

Domestic Supply

Bolivia

LNG

mill

ion

m3 /d

@ 9

,400

k c

al/m

3

82

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

PHASED INVESTMENT PLAN

Phase I

Gas & Energy Area Creation

Phase II

2009-13Business Plan

Phase I (2003–2010): Diversify Supply and Integrate NetworkRationale:

• Meet domestic needs of power generation and non-thermal market• Diversify supply: Bolivia and LNG;• Increase power generation capacity

Result: PLANGAS, network integration, regasification terminal construction

Phase II (from 2011): Increase Supply Flexibility and Network IntegrationRationale:

• Expand natural gas supply and transmission capacity• Create options to reach domestic and international markets

Result: Pre-salt production offloading, regasification terminals, expanded thermoelectric power generation

83

PHASE I: DIVERSIFY SUPPLY & INTEGRATE NETWORK(A) EXPAND PIPELINE SYSTEM

Gasbol

GLP duto (Jan/09)Urucu - Manaus (Sep/09)

Urucu

Manau s

GasforAçu/Serra do MelNordestãoPilar-Ipojuca (sept/10)GASALPItaporanga-PilarAtalaia-ItaporangaGASEBCatu-ItaporangaCacimbas-Catu (mar/10)Cacimbas-VitoriaLagoa Parda-Vitoria - GasvitCabiúnas-VitóriaGasduc III (sept/09)Gasduc I e IIJaperi-Reduc (mar/09)Campinas-Rio (trecho Taubaté-Japeri) Campinas-Rio(trecho Paulinia – Taubaté)Gastau (oct/10)Paulínia – Jacutinga (jul/09)GASPAL II (apr/10)GASAN II (apr/10)GASPAL IGASAN IGasbol - Ampl. T. Sul (may/10)

UnderwayExisting

ExistingTransportationPipelines:2003 – 5,451 km2006 – 5,495 km2007 – 6,157 km2008 – 6,933 km

PipelinesUnderway:2009 – 7,930 km2010 – 9,265 km

70% expansion 2003-2010

84

Capacity:7 MM m3/d

Start-up:Jan/09

Objective:Flexible gassupply for thermalgeneration in the Northeast

Terminal Overview: Regasification Vessel – 01/22/09

PHASE I: DIVERSIFY SUPPLY & INTEGRATE NETWORK(B) ADD FLEXIBILITY WITH LNG

PECÉM TERMINAL

85

PHASE I: DIVERSIFY SUPPLY & INTEGRATE NETWORK(B) ADD FLEXIBILITY WITH LNG

Capacity:Terminal: 20 mm m3/d

Regasification Vessel: 14 mm m3/d

C&A completion:Jan/09

Objective: Flexible gassupply for thermalgeneration in theSoutheast

Terminal Overview: Construction and Assembly (C&A) Completion – 01/22/09

GUANABARA BAY

86

Gover. Leonel Brizola1,043 MW

Fernando Gasparian370 MW

Luís Carlos Prestes252 MW

Sepé Tiaraju 160 MWBI-FUEL

Juiz de Fora84 MW

Tambaqui89 MW

Jaraqui89 MW

Manauara85 MW

Mário Lago922 MW

Rômulo Almeida138 MW

Celso Furtado185 MW

Aurel. Chaves226 MW

Bahia I31 MW

Santa Fé30 MW

Termocabo 48 MW(leased)

Petrolina 128 MW(leased)

Funil22.5 MW

São Joaquim21 MW

Carangola15 MW

Araucária484 MW

BarbosaLima Sobrinho 386 MWBI-FUEL

Termoceará 220 MWBI-FUEL

NG 4.900 MW

OIL 472 MW

PCH 187 MW

BANAÇO 60 MW

Potiguar III 66 MW

Potiguar 52 MW

Jesus S. Pereira 340 MW

Ar embepe 148 MWAr eia 11,4 MW

Água Limpa 14 MW

Brentech 140 MW

Britarumã 60 MW

Irara 30 MW

Jataí 30 MW

Retiro Velho 18 MW

Euzébio Rocha 208 MW

Pira 19 MW

SU APE II 350 MW

Muricy 148 MW

Bonfante19 MW

São Pedro 30 MW

Fumaça 44,5 MW

São Simão27 MW

Calheiros 19 MW

Monte Serrat 25 MW

PHASE I: DIVERSIFY SUPPLY & INTEGRATE NETWORK(C) INCREASE POWER GENERATION CAPACITY

2008: 24 Plants: 5,559 MW2010: 43 Plants: 7,135 MW

87

PHASE II: INCREASE SUPPLY FLEXIBILITY & NETWORK INTEGRATION(A) TRANSPORTATION INFRASTRUCTURE

Increase natural gas supply and flexibility:

Additional regasification terminals will:

Increase supply to meet thermal demand

Create opportunities to supply domestic and international markets

Increase natural gas transmission capacity:

Add 307 km of pipelines and new compression facilities

Increase (net) natural gas flow between the Southeast and Northeast

Connect new natural gas supplies, including pre-salt and third and fourth LNG terminals

88

PHASE II: INCREASE SUPPLY FLEXIBILITY & NETWORK INTEGRATION(B) ENERGY INVESTMENTS

Expand thermal generation

Federal government plan (2008-2017) creates opportunities to expand power supply from natural gas-fired plants;

Petrobras foresees participation in future energy bids, assuring fixed revenue before investment;

Petrobras may participate as:

LNG supplier

Logistical service provider (transportation and/or regasification)

Power generator

Combinations of the above

This will be done via competitive bidding

89

GAS & ENERGY INVESTMENT PLAN 2009-2013

926

1,477

4,528

3,692

Projects in Portfolio New Investments Proposed

Projects in Portfolio New Investments Proposed

Natural Gas

US$ 8.2 billion

Energy

US$ 2.4 billion

G&E InvestmentsUS$ 10.6 billion

US$ million

90

FINANCE

Shareholder Return (TSR)

CREATING SHAREHOLDER VALUE AND IMPRESSIVE RETURNS ON CAPITAL

‐80%

‐55%

‐30%

‐5%

20%

45%

70%

95%

120%

145%

2003 2004 2005 2006 2007 2008

MIN

MAX

PBR

HES

PBR

BGENI

MRO

OXY

STOREP

‐20%

‐10%

0%

10%

20%

30%

40%

50%

10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30%

ROACE (Average 06‐08)

TSR (Ave

rage 06‐08

)

Source: Bloomberg/Company reports

Total Shareholder Return (TSR) vs. ROACE

92

Brazilian Corporate Law requires a minimum annual distributions equal to 25% of net income

STEADY PAYOUT AND INCREASING INCOME HAS LED TO HIGHER DIVIDENDS

Note: Net Income and Dividends based on provisioned dividends and US GAAP.

US$ mm

93

31%

33%

32% 32%

29%

‐2.0004.0006.0008.000

10.00012.00014.00016.00018.00020.000

2004 2005 2006 2007 2008

10%

15%

20%

25%

30%

35%

40%

45%

50%

Net Income Dividend Divi dend as % of Net Income

SOURCES

- 5,0 0 0

0

5,0 0 0

10 ,0 0 0

15,0 0 0

2 0 ,0 0 0

2 5,0 0 0

3 0 ,0 0 0

2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8

OC F Ne t Debt

USES

GROWING CASH FLOW DRIVES CAPEX…

-5.0 0 00

5.0 0 010 .0 0 0

15.0 0 02 0 .0 0 0

2 5.0 0 03 0 .0 0 0

2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 *

CAPEX Dividends Acquisition

94

Sound credit ratios and commitment to maintaining investment-grade ratios

0.670.59

0.38

0.64

1.101.16

7.1% 13.7%6.5% 2.7% 4.7% 6.5%

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

2003 2004 2005 2006 2007 2008

Net Debt/EB ITDA ST Debt/L T Debt

Net Debt/ EBITDA and ST Debt/LT Debt

Long Term Debt to Long-term Capital *

...ACCOMPANIED BY STRENGTHENING CREDIT RATIOS AND INCREASED DEBT CAPACITY

* Source: Companyreports (REP, HES, ENI, BG, OXY, MRO, STL)

0%

10%

20%

30%

40%

50%

2003 2004 2005 2006 2007

MAXMINPBR

95

ProjectedUS$ 148.6 bn (2009 – 2013)

HistoricalUS$ 88.5 bn (2003 –2008)

HISTORICALLY, CONSERVATIVE PLANNING HAS LED TO A BALANCE BETWEENOCF AND CAPEX; NEW PLAN WILL FOLLOW SIMILAR APPROACH

Sources Uses

OCF(after dividends) Capex

(US$ 92,3 bn)

Net Debt

Sources Uses

OCF(after dividends)

Net Debt

Capex(US$ 174 bn)

Average Brent: US$ 60/bbl

Average Oil Production: 1,720 (thousand boe/d)

Average Brent (e): US$ 66/bbl

Average Oil Production (e): 2,398 (thousand boe/d)

96

2009-2013 ASSUMPTIONS AND CAPEX ARE DESIGNED TO MAINTAIN TARGETED FINANCIAL RATIOS

INDECES 2008-2012 Plan 2009-2013 Plan

FX Rate (R$/US$) 2.18

Brent for Funding (US$/bbl)2008 – 55.002009 – 50.002010 – 45.002011-2012 – 35.00

Projected Net Cash Flow (After dividends) (US$ bn) 104.4

Projected Investments (US$ bn) 112.4

Net Debt/Net Debt + Shareholders´Equity(Leverage) 20%

Minimum cash balance (US$ bn) 3.8

2.0

148.6

174.4

Up to 35%

5

2009 – 58.002010 – 61.002011 – 72.002012 – 74.002013 – 68.00

97

2009-2013 PLAN: BRENT PRICE ASSUMPTIONS

US$/bbl

6060

68

7472

6158

4545454545

4037

30

35

40

45

50

55

60

65

70

75

80

2009 2010 2011 2012 2013 2014 2015

Reference Curve Robustness Curve

98

LONG-TERM PRICING ASSUMPTIONS AT OR BELOW MARKET FORECASTS. NEAR-TERM FUNDING REQUIREMENTS ASSUME PRICES WELL BELOW THE FORWARD CURVE.

Petrobras uses a `severe stress´ scenario to project financial need through 2010

0

20

40

60

80

100

120

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

US$

bbl

Brent ‐ Forwa rd Curve (01/23/09) PIRA (Jan 09) Petrobras (Ba se Ca se) Petrobra s (Funding 09‐10) WoodMackenzi e (Dec 08)

Projected Brent Curves

Source: Bloomberg/PIRA/Mackenzie 99

THE PLAN DOES NOT ASSUME CAPITAL COSTS WILL DECLINE, ALTHOUGH LOWER OIL PRICES SHOULD PRODUCE DOWNWARD PRESSURE ON COSTS

Inde

x(2

000=

100)

0

100

200

300

400

500

2000

2001

2002

2003

2004

2005

2006

1Q07

3Q07

1Q08

3Q08

4Q08

2009

2010

2011

2012

2013

CCI Downstream CCI Upstream WTI

18%

11%

Source: CERA / Bloomberg

Capital Cost Index

100

FINANCIAL PLANNING THROUGH 2010 IS BASED ON A WORST CASE SCENARIO

* Capexfor 2010 is based on the annual average of the Plan´s total spending.

(18.9)(18.1)Funding Needs

2010*2009

35.028.6Capex16.010.5OCF including amortization and after dividends

4037Brent (US$ / bbl)

Minimum Projected Cash Flow (US$ bn)

Key Variables to Petrobras Cash Flow• International price of crude oil and oil products• Internal domestic prices• Exchange Rate• % of investment execution• Cost of capital investment

101

FUNDING FOR 2009 COMPLETED, WITH REMAINING NEEDS FOR 2010 TO BE MET VIA TRADITIONAL SOURCES AND COST REDUCTIONS

2009 2010

Needs• US$ 18.10 bn

Sources

Needs

• US$ 18.9 bn

Sources• BNDES: US$ 10.0 bn• Remainder to be financed : US$ 8.9 bn• 15% reduction in capex would reduce

remaining financial needs to less thanUS$ 4 bn

102

• BNDES: US$ 12.5 bn• Capital Market: US$ 6.5 bn (bridge loan)

*US$ 2.75 bn (Global Notes due 2019, in 2 tranches: 1.5 bn, yield 8.125% + 1.25 bn, yield 6.875%)

• US Exim : US$ 2 bn• CDB: US$ 10 bn

For more information:Investor Relationswww.petrobras.com.br/ri+55 21 [email protected]

Documents

Petrobras Master Plan PN 2009-2013